Main navigation

Hayward: Wahab tried to lower council pay by 5%, colleagues were cool to the idea

Hayward Councilmember Aisha Wahab

As Hayward councilmembers thanked its executive team and firefighters on Tuesday night for foregoing two percent cost-of-living increases to help lower the city’s ballooning covid-related deficit, in addition, to their own two percent cut in council pay, Hayward Councilmember Aisha Wahab, instead, pushed for further generosity from her colleagues.

“I, personally, am willing to forego for Fiscal Year 2021, up to five percent,” Wahab told her council mates on Tuesday night.

Several Hayward councilmembers, including Mayor Barbara Halliday, were cool to Wahab’s proposal. Instead, they urged Wahab to make her own donations to local charities, including the Hayward Community Relief Fund.

“I would strongly recommend you go the donation route, which I think would be very helpful for the community,” Halliday said.

Others, like Councilmember Elisa Marquez and Al Mendall, touted their own contributions to the fund created during the pandemic to help Hayward residents affected by covid-19.

For councilmembers, who are now required to foot the bill for any council-related travel expenses under the new policy approved Tuesday night, the move amounts to another pay cut, Mendall said. Councilmember Mark Salinas, who supported the salary cut, said he believes it’s the third time he has done so since first being elected to the council in 2010.

Referencing a comment made earlier by Wahab that low council pay may dissuade future candidates to run for the city council, Marquez said, “This is a lot work and a lot of responsibility. I think most of us put in 30-40 hours a week to serve in this capacity.”

Lowering salary pay may make it more difficult to retain and attract council candidates in the future who are not either wealthy or retired, Marquez added. “I think we’re all comfortable making that cut right now because of covid.”

The mayor of Hayward currently draws a $40,000 annual salary. Councilmembers earn roughly $25,000. The two percent cut in salary amounts to $800 and $500, respectively.

The city’s push to cut costs in the face of the covid-19 economic downturn has started to yield some savings. By foregoing COLAs to the end of their current contract, the firefighters unions save the city about $480,000. Meanwhile, the city manager and executive staff, along with the city council pay cuts, add another $18,300 back into the city’s treasury.

But there are strong signs Hayward is likely to be facing a very difficult financial future. Roughly half of Hayward’s $36 million in total General Fund reserves for the current fiscal year, which concludes on June 30, is likely to be gobbled up. This is mostly due to the dramatic decrease in sales tax revenues.

Most temporary city employees have already been laid off, and non-personnel expenses have dropped from $750,000 to $250,000 during the pandemic, city staff said.

In addition, councilmembers will now pay for their own meals. Previously the pre-council meeting meals were provided by the city. Wahab, however, has paid for her own meal since becoming a councilmember in December 2018.

In recent weeks, Hayward councilmembers have met in closed session on at least three occasions with labor unions in an effort to find additional cost savings. Possibly deferred pay, or even discussions about layoffs, may be on the table.

Because of the ongoing talks, which include two more scheduled closed sessions with labor next week, elected officials do not have a firm grasp of how bad Hayward’s financial woes may be. A full budget presentation is scheduled for June 2, a very late date in the process, given the city’s budget must be balanced and approved by June 30.

“Because we are in flux right now because of trying to negotiate with our bargaining groups to help generate some savings for next year, we have not prepared our typically budget document that the council would have received by now,” said Kelly McAdoo, Hayward’s city manager.

It’s unclear whether talks with labor have become contentious at this point, but mistrust, although somewhat alleviated in recent years, has been evident in Hayward labor negotiations in the past.

In fact, Wahab’s proposed five percent salary cuts for councilmembers, whether intended or not, evokes the controversial, and later determined illegal, five percent wage cut the Hayward City Council imposed on city employees in 2013.

Labor unions in the city have long memories when it comes that particular council decision. Three members of the current city council offered support for the wage imposition – Councilmembers Francisco Zermeno, Al Mendall, Mark Salinas, and Mayor Halliday.

8Comments

First, city officials claimed a loss of possibly 3.5 million dollars and now it has mushroomed to possibly 17 million dollars in lost revenue? Was 3.5 million supposed to be a loss in Sales Tax and 13.5 million comprised of City related fines and fees not being collected during the shelter in place? Having two Costco Warehouses in Hayward must have generated a good chunk of Sales Tax revenue for the city’s coffers especially these past few months. Hope the city doesn’t cut services to it’s residents. Hayward residents are usually willing to vote Yes to pay extra taxes in order to ensure city services as promised by at least two tax measures. Layoffs lead to cuts in services, so maybe next time the residents won’t be so willing to vote
Yes for another tax increase to maintain city services. Remember that, the next time the city peddles their satisfaction surveys. It’s just their sneaky way to gauge whether its residents pockets are ripe for the picking again.

Your are wrong about COSTCO REVENUE. If you have e bothered to visit a Costco or even Trader Joe’s you would know hardly anyone is allowed into these stores at one time. Therefore the volume of sales is WAY WAY DOWN. Think about it! I’ve heard these stores may be laying off employees. Just because there’s a big line around the block at Costco means nothing except hardly anyone is in the store shopping at one time because of Covid. Not rocket science!

Actually I did visit a Costco in March and the line was around the block. Once inside, I noticed that people had full carts. Didn’t see anyone leaving Costco empty handed while I waited in line for 30+ minutes. Nobody seemed to be standing in line to expose themselves to the virus just for the kicks. They went there to buy what they needed. February and March sales at Costco were at their highest peak. It wasn’t until April that sales fell 1.8% which is logical because of consumers bulk purchasing and people are conserving their income. I didn’t go to Trader Joe’s because Hayward doesn’t have one. Until Hayward residents achieve six figure incomes and customers become more educated, Hayward won’t get a Trader Joe’s. Google “Why don’t I have a Trader Joe’s in my area?” So getting a Trader Joe’s in Hayward would be rocket science.

Firefighters have unbridled discretionary overtime. They ceremoniously postpone a 5% regular increase, while quietly racking up more overtime than most Hayward residents earn in straight salary. The offset is sickening. They’re leading the City straight to bankruptcy while the Council quibbles over $500. Morons. Prepare for service cuts and more tax increases. https://transparentcalifornia.com/salaries/2018/hayward/

1. A 5% cut for these people, Mayor and Council, should be easy. 2. The firefighters make good money, but they also risk their lives. So, forgoing, a COL increase, is to be applauded. 3. If you believe that you can balance the budget for anything, including your families’, then step up and make specific recommendations based on facts and data, and not your fantasy team.